Schroders’ profit plummets
PROFITS at Schroders plummeted by almost a quarter as the 218-year-old firm became the latest money manager to come under pressure.
The FTSE 100 asset manager pointed to ‘challenging markets and lower performance fees’, as it unveiled full-year profits. It comes amid a tumultuous time – just days after Stephen Bird, boss of Abrdn, said 2022 was ‘one of the hardest investing years in living memory’. Schroders’ shares tumbled 3.7pc, or 18.7p, to 481.5p yesterday. Its share price has lost 22pc of its value over the past year. Profit slipped to £586.9m, for the fullyear to December 31, a 23pc fall from the £764.1m in 2021.
Falling markets across all asset divisions hammered management and performance fees across its core investment management business.
Assets under management declined 4pc to £737.5bn from £766.7bn, after being dragged down by market and foreign exchange movements. Chief executive Peter Harrison, who was paid £8.5m in 2021, said 2022 was a ‘stress test’ for its strategy. ‘The businesses we have been building – across wealth management, private assets and solutions – performed strongly,’ he added.
The firm has been diversifying as it looks to move towards more longer-term revenues, with its private assets business Schroders Capital netting a record £17.5bn of fundraising, particularly in property and private equity.